DOING BUSINESS IN UGANDA A Practical Guide

I INVESTING IN UGANDA

FISCAL INCENTIVES

INVESTMENT LICENSE

ADDITIONAL LICENSES REQUIRED

IMPORT AND EXPORT INFORMATION Customs Valuation Import Certificates Export Controls Labellmg, Marklng Requirements Standards Free Trade Zones/Warehouses Membersh~p m Free Trade Arrangements

TAXES Income And Corporate Taxes Value Added Tax (VAT)

INSURANCE

INVESTMENT HURDLES Land Customs

GENERAL INFORMATION ON UGANDA Geographical indicators 1996 Economlc Indicators 1996 Demographic Characteristics

II BUSINESS ENTITIES IN UGANDA

COMPANIES Certificate of Incorporation Memorandum Of Association Articles Of Associat~on

FOREIGN COMPANIES

SOLE PROPRIETORSHIPS

PARTNERSHIPS

Ill PUBLIC SECTOR REQUIREMENTS

QUICK GUIDE

REGISTERING A BUSINESS NAME

REGISTERING A COMPANY (INCORPORATING)

REGISTERING A FOREIGN COMPANY

REGISTERING A PARTNERSHIP

OBTAINING AN INVESTMENT LICENSE

OBTAINING TELEPHONE SERVICE Uganda Telecom Limited (UTL) CelTel (U) Ltd MTN Uganda Ltd

OBTAINING POSTAL SERVICE

OBTAINING ELECTRICITY

OBTAINING WATER AND SEWER SERVlCE

OBTAINING WORK PERMITS

REGISTERING FOR INCOMEfCORPORATE TAXES

REGISTERING FOR VALUE ADDED TAX (VAT)

OBTAINING A TRADING LICENSE (KAMPALA)

IV DIRECTORY OF SERVICES

QUICK INDEX

PUBLIC AUTHORITIES Capital Markets Author~ty (CMA) and Uganda Securit~es Exchange (USE) National Agricultural Research Organ~sat~on (NARO) National Environment Management Authority (NEMA) Uganda Export Promotion Board (UEPB) Uganda Investment Authority (UIA) Uganda National Bureau of Standards (UNBS) Uganda Tourist Board (UTB)

MAINSTREAM BUSINESS ASSOCIATIONS Northern Uganda Manufacturers Association (NUMA) Uganda Manufacturers Association (UMA) Uganda Natlonal Chamber of Commerce and Industry (UNCCI) Uganda Oilseed Processors Association (UOSPA) Uganda Small Scale Industries Assoclation (USSIA)

-da Women Entrepreneurs Assoclation L~mited (UWEAL) Uganda Women's Fmance Trust (UWFT)

OTHER BUSINESS ASSOCIATIONS Federation of Ugandan Consultants (FUCO) Federation of Uganda Employers (FUE) Institute of Certified Public Accountants (ICPAU) Procurement and Logistics Management Association (PALMA) Securities Commodities Exchange Brokers & Dealers Association Uganda Clearlng and Forwardmg Agents Association (UCIFA) Uganda Coffee Farmers' Association Uganda Coffee Trade Federation (UCTF) Uganda Commercial Farmers' Association Uganda Consumers' Protection Association (UCPA) Uganda Cooperative Alliance (UCA) Uganda Flotlcultural Assocrabon (UFA) Uganda Flowers' Exporters' Association Uganda Gram Exporters' Association Uganda Honey Bee Keepers' Associat~on Uganda Importers and Exporters Association (UGIETA)

Uganda Insurers Association (UIA) Uganda Natlonal Farmers Assoclat~on (UNFA) Uganda Poultry Development Association Uganda Quarries' Operators' Assoclatlon Uganda Secunhes Brokers & Dealers' Assoctat~on

DEVELOPMENT BANKS AND LEASING COMPAMES Development Fmance Company of Uganda (DFCU) East Afilcan Development Bank (EADB) Uganda Development Bank (UDB) Uganda Leaslng Company Llm~ted

DONOR PROJECTS Agnbusmess Development Centre (ADC) Busrness Uganda Development Scheme (BUDS) The Danida Pllvate Sector Development Programme European Unlon Small Scale Enterprise Development Programme m the Urban Sector (SSEDP) Prlvate Enterpnse Support, Tramrng and Organ~sahonal Development Project (PRESTO) Pllvate Sector Foundahon @SF) UNDP Private Sector Development Programme (PSDP)

BUSINESS CONSULTANCY FIRMS 31 Impact Associates 3 1 Impact Busmess Bureau 32 Incafex Consultants Ltd 32 InterAfi~ca Corporate (U) Lunlted 32 Serefaco Consultants Ltd 32 Uganda Manufacturers Assoclat~on Consultancy and Information Services Ltd (UMACIS) 32

Given that the new Investment Act, new Compan~es Act, and the devoluhon of the Resstrar General are currently pendmg, we are plann~ng to publ~sh a fourth and

rev~sed ed~t~on In the fourth quarter of 1999

Research and analysls for this thlrd ed~tlon prov~ded by Sarah I(ltakdey Bruce Mazzle, John Gara, Evelyn Stark, Carolyn Elhott-Fanno, Clare Manuel, %chard Wark, Bill

Kmamura, and Shonubl, Musoke & Co Advocates Any errors or omlsslons are solely the respons~bll~ty of PRESTO

Edltors Alice Mukasa and Carolyn Elhott-Fanno

Published by PRESTO Prrvate Enterprrse Support, Tra~nlng and Organrzadonal Development Project

PO Box 24204, Plot 2 1 Kawafya Kaggwa Close, KofoIo Tel 34748 1 /3 Fax 347635

'Technzcal asszstance, traznzng and grants for growth of the przvate sector "

The USAID-PRESTO Project IS implemented under contract with Management Systems Jnternatronal wrth PrrcewaterhouseCoopers as sub-contractor.

I. INVESTING IN UGANDA

Uganda boasts a rap~dly growing economy wrth generally low, stable rates of inflation Uganda has taken major str~des to liberal~ze the economy, malntaln low ~nflat~on and allow the economy to grow, which it has done at h~gh rates slnce 1987 GDP growth, which averaged more than 8 percent in the three previous years, was 5 percent in 1996197 The Government of Uganda IS privat~zing parastatals, revislng regulations to promote fore~gn ~nvestrnent and following IMF guidelines to restructure the economy Major efforts are underway to restructure several commerc~al banks and strengthen Uganda's financ~al system

The Ugandan Government's economrc strategy IS to modern~ze the economy by rely~ng on markets and the efforts of private entrepreneurs as the bas~s for efficient and productive economic activity In the meantrme, the government provides the necessary legal, policy and physical ~nfrastructure for private ~nvestment to flourish Thrs strategy, endorsed by the World Bank, other donors and the pnvate sector, is already showing results Uganda currently ranks as the fastest growlng economy m Sub-Saharan Africa

Most economic act~v~ties are fully l~beral~zed and open to fore~gn rnvestment There are no restrictions on 100% o w s h p 4 : w e s ~ e n t s Lvy f~relgil ~fivesiors and no parrlers to remittance ofdEd%ds The Ugandan sh~lllng IS fi~lly convertrble and has rema~ned stable over the last five years The forelgn market is now wholly liberalrzed and Uganda IS one of the very few countries m Afr~ca that has no foreign exchange controls

In general, the environment for private sector Investment m Uganda IS very healthy Taxes on ~mports and locally manufactured goods cont~nue to go down and as a result economic activity m tour~sm, manufactur~ng and agrrculture IS up while the ~mpetus for regronal and ~nternatronal export trade has increased

The Uganda Investment Authority (UIA) IS the lead agency m prov~drng asslstance and ~nformation to investors They have produced two guldes for the lnvestor which should be consulted A Quzck Gurde to Investzng zn Uganda (August 1998) and the more comprehens~ve Guzde to Investzng zn Uganda (March 1998) There are also busrness associations, busmess consultancy firms, solicitors, and realtors wh~ch can offer asslstance to the prospectrve Investor A list of busmess assoclat~ons and consultancy firms has been Included in this document Please consult the Table of Contents

FISCAL INCENTIVES

Uganda's Incentive package prov~des for generous cap~tal recovery terms, particularly for investors whose projects entall slgn~ficant ~nvestlnent in plant and machinery and whose investments are medium/long term The incentives package includes

A unlforrn corporate tax rate of 30% whlch is among the lowest rn Africa and the world Zero rate of tax on imports Imports of any necessary plant, machinery and equipment not available In Uganda carry a zero ratrng in the Harmon~zed Tariff Code A duty draw-back facillty for exporters A fully l~beralized foreign exchange regime w~th no restrictions on the movement of capital into and out of the country A freely convertible and stable currency An lnltial Investment allowance of 50-75% on plant and machmnery, 25% on start-up costs, and 100% on sc~entrfic research, training, and mrneral exploration expendrtures These are capital allowances/expenses wh~ch are deductible once from the Company's income Deductible annual allowances for equipment, furniture, and vehicles ranging from 20-45% Other annual depreciation allowances on industrial buildmgs, hotels, and hosprtals of 5%, and on general farm works and horticultural activ~t~es of 20% VAT at 17% wrth deferral and efficient VAT refund fac~l~ties Double taxat~on agreements with the UK, South Afnca, Kenya and Tanzania

Reciprocal Investment agreements w ~ t h the UK, South Africa, Kenya, Tanzania, and Italy Investment protection and bilateral trade agreements w ~ t h numerous other countrtes A variable rate of income tax (VRIT) for the mining sector

INVESTMENT LICENSE

In accordance with the Investment Code, 1991, a foreign investor must obtain an investment licence Foreign investor means a company in which at least 50% of the shares are held by non-citizens of Uganda A local Investor is not required to obtaln an investment licence, however, the license affords the investor certain privileges throughout the process of establ~shlng a business New foreign investors are required to approach the Uganda Investment Authority (UIA) to obtain an rnvestment license and at the same time receive assistance m settlng up thew Investment In order to qualify for an ~nvestment license, there must be an investment of $50,000 for local Investors (the license is optional), or $100,000 for foreign Investors (the license is obl~gatory)

ADDITIONAL LICENSES REQUIRED

Some sectors of investment require secondary licenses or perm~ts prior to the issuance of an investment license These include fisheries, mining, tourrsm, forestry, air transport, banking, and media and broadcasting The UIA can assist the investor to obtain these licenses from the relevant line ministries or agencies

IMPORT AND EXPORT INFORMATION

Customs Valuation

Uganda follows the Harmon~zed System (HS) of categor~z~ng goods All imported goods worth $10,000 and above are subject to a pre-sh~pment ~nspect~on in the country of or~gin The pre-shipment inspection covers

Ver~ficatlon of the quantity and qual~ty of imported goods to ensure conformity w ~ t h contractual specifications Price comparison to ensure that the prrce of imported goods corresponds to the prevailing export market price of comparable goods Verification of the customs class~ficat~on code and evaluation of the dutiable value of imported goods according to Uganda Customs Regulat~ons

Import Certificates

All importers are requ~red to complete Form E (Declaration of Imports) whlch can be processed by commercial banks and fore~gn exchange bureaux Iinport certificates, which are non-good-specific, are required and have a validity of six months The certificates take the place of import licenses

Supplementary documentat~on may be requrred by the Uganda Revenue Authority at the entry point whenever the following goods are imported

Human and animal drug medlcat~ons Ver~fied pro-forma invoices from the Pharmacy Board Flrearms Flrearrns Cert~ficate Live animals (domestic and wild) Health Certlficate Wlld endangered species Approval Authority Secondhand clothing Fumigat~on Certificate Explosives Approval Authority Seeds and plants Phytosanitary Certificate

Export Controls

Items whrch cannot be exported w~thout prior authorrzatron by the M~n~stry of Tourrsm, Trade and Industry ~nclude

Waste and scrap of ferrous cast Iron Wood charcoal T~rnber from any trees grown In Uganda whether sawn, unsawn, hewn or mach~ned (but not any other artrcles manufactured from such wood) Coffee husks Fresh unprocessed fish Game troph~es

The following supplementary documents are requrred at the Customs exrt whenever the followrng goods are exported

Frsh Health Certrficate and Trad~ng L~cense Mmerals Permlt to export m~nerals, Mrneral Dealer's L~cense Fresh/dry fru~t and vegetables Phytosan~tary Health Certrficate Game Trophres Permrt to export game trophres and wrld anrmals H~des and skrns Export Buyer's lrcense, Export Cert~ficate for h~des and sk~ns, Veterrnary Health Certrficate

The follow~ng rnformat~on must be clearly marked on rmports and exports

rmporter/exporter name, consignee,

fl~ght/vehrcle detarls, place of d~scharge, number of packages, conta~ner ~dentrty, descr~pt~on of goods, arr way b~ll number/brll of lading and country of orrgrn/dest~natron

Standards

Importers and exporters should contact the Customs Adm~n~stratron for spec~fic rnformatron on standards

Free Trade ZonesNirarehouses

There are no free trade zones In Ugand? There are bonded warehouses

Membership In Free Trade Arrangements

Uganda IS a member of the Preferent~al Trade Area (PTA) for East and Southern Afrlcan States, the Common Market for East and So~~thern Afr~ca (COMESA) and the Afrrca-wrde Abuja Agreement Dut~es and tariffs for countries 111 these g~oups, including South Africa, are significantly lower than dutres for non-members Uganda IS also part of the East Afrrcan Cooperatron, formed wrth the ne~ghbor~ng countr~es of Kenya and Tanzanra

TAXES

Income And Corporate Taxes

The payment of taxes IS regulated by the Income Tax Act 1997 Graduated Income tax must be pald by most residents of Uganda, crtlzen and non-citizen alike Persons covered by taxation agreements (e g diplomats) are exempted All companies must pay a corporate tax which is 30%, except for rnln~ng companies whlch are taxed at a varlable rate from 25-45% The Uganda Revenue Author~ty (URA) or a solic~tor should be consulted for more ~nformation on the payment of taxes, tax incent~ves, double taxatlon agreements, first arrival pr~vlleges, and other issues related to dutles and taxes

Value Added Tax (VAT)

VAT IS governed by the VAT statute 1996 and is charged at a rate of 17% All suppliers of goods and servlces wlth an annual turnover of at least UgSh 50,000,000/= (approx $50,000) must register for VAT and charge and pay VAT on all goods and servlces sold by them Suppliers w~th an annual turnover of less than 50,000,000/= are not required to reglster Only registered suppliers may charge VAT on goods or services sold, and may clam an input tax on goods and services acquired The URA or a solicitor should be consulted for more informat~on on VAT

INSURANCE

Third party l~ab~llty insurance must be taken out on each motor vehicle No other Insurance pol~c~es are required

INVESTMENT HURDLES

Land

Local Investors can own land wh~le foreign investors are restricted to long term leases, usually from five to 99 years Land can be obtained froin prlvate owners, local counclls and other government agencles Locating available and suitable land 1s not a s~mple process, especially In Kampala where it is scarce In Kampala, when land IS located, the ~nvestor must submlt all plans through the buildlng department of Kampala City Council which IS requ~red to period~cally check the constructlon stages and Issue the cert~ficate of occupancy

Investors seeklng to bulld thew own plant w1l1 discover that the costs of a new bullding are extensive The Investor must pay the costs of construct~on, the land lease (generally five years up-front, and at the end of that period, 44 years pald up front) and the ground rates Add~t~onally, the investor may be required to fund the costs of the watertsewer plpes and the telephone and electric poles and wires

Acquiring land is not specifically handled rn this document as it is a lengthy issue A new land law was passed in 1998 and the Uganda Investment Author~ty (UIA) can assist in interpreting this law The UIA, a business consultant, a realtor, or a solicitor can asslst the Investor In locatlng property and purchasing or leasing it, as well as wlth the constructlon phase PRESTO has published a document called The Investor s Real Estate Gurde which has detailed lnformatlon on securlng real estate for Investment purposes

Customs

All investors have to deal wlth customs at some po~nt, whether ~t is clear~ng personal effects sent over as part of the first arrlval pr~v~leges or ~ri~port~iig and exporting merchand~se Clearing customs 1s a lengthy process and in the case of importers very costly Shtpments comlng from the UK to Kampala

can take as long as two to three months to arrive because of delays involved In clear~ng customs, and an Import commlsslon, w~thhold~ng tax, Value Added Tax (VAT) and customs dutles will be collected There may be addlt~onal costs as well

GENERAL INFORMATION ON UGANDA

Lat~tude Long~tude Altltude (mln~mum ASL)

(maximum ASL) Total surface area Area under land Area under water & swamps Temperature Rarnfall

GDP at factor cost Per caprta GDP % of agriculture In GDP Balance of payments surplus Inflation rate Budget deficit, as a % of GDP (1996197) GDP growth rate Per capita GDP growth

Total population Female population Mdle population Percentage Urban Populatlon of Kampala (1 995) Female populatron aged 15 - 49 (1 995) Male populat~on aged 15 - 54 (1995) Population aged 0 - 4 (1995) Populatlon aged 65+ (1 995) Sex ratio of total population (1 995) Population density (1991) Infant Mortality Rate (1 988-92) Llfe expectancy ( 199 1)

Male Female

Populatlon Per Phys~cian (Doctor)

40 12'N & lo 29' S 290 34'W & 350 0' E 620 metres 5,110 metres 24 1,038 ~ m 2 197,097 ~ r n 2 43,941 ~ m 2 15-3OOC 750 - 2,000 mm/year

UgSll 6,037,603,000,000 UgSh 305,825 48 4% US$ 109 6 million 7 0% 3 0% 5 0% 2 1%

19 26 m~llion 9 75 millron 9 50 m~llion

13 4 840,700 4 32 million 4 44 mlllion 3 83 in~llton 0 46 million

97 4 85 pers /kin2 97 per 1000

45 7 years 50 5 years 18,575

POPULATION OF ClTIES MUNICIPALITIES AND TOWN COUNCILS 1991 CENSUS

(1) The l~ s t rncludes d~str~ct adm~n~strat~on lieadqu lrters wli~ch are not offi~~ally Gazetted as Town Counc~ls (2) Karuguuza Town Counc~l (K~baale) IS not ~ncluded It w ~ s cre~ted after enumeration and the enumerated boundar~es do not match the actual boundar~es

STATUS

CITY

MUNICIPALITY

TOWN COUNCIL

DISTRICT

Kampala

Arua Gulu Jlnja Kabale Fort Portal L~ra Masaka Mbale Mbarara Moroto

Mplgl Sorot~ Tororo

Apac Bund~bugyo Busheny~ Ho~ma Iganga kalangala Kamul~ Kapchorwa kasese K~boga K~soro

k~tgum kot~do hum1 Luwero Luwero Luwero Masrnd~ Moroto Moyo MPW Mubende

Mubende Mukono Mukono Mukono Mul\ono Nebb~ Ntungamo Pallrsa Raka~ Raka~ RuLung~r~ Tororo

URBAN CENTRE

Kampala

TOTAL

Arua Gulu J~nja Kab~le Fort Portql L I ~ T Mqs ih~ Mbile Mbararo Moroto

M P I ~ I Soroll Tororo

TOTAL

Apqc Bund~bu,yo Bush~ny~ Horn1 I Iglngi k i l lng 117 kamul~ kip~liorwa k ~ s e s ~ krbogi h~soro

krtgum kotrdo hum1 Bombo W O ~ L I ~ L I I L I Lu\\cro M ~s~ndr Moroto Moyo M I I I ~ I MI(\ in I

Mub~ndt k3y ungi 1 ug ILI

Muhono Nj~ru N~bbl Ntung ~ m o P lllls 1

h ~ o t ~ r i R T ~ I I Ruhung~r~ BLISI 1

1 OTAL

MALE

377225

377225

10 682 18 404 32 578 13 994 15 844 14 857 23 660 25 358 21 493

5 386 21 218 19 336 12 987

235 797

2 781 3 275 6 981 2 078 9 052

752 2 948 2 235 9 376 2 479 3 615

6 203 2 282 5 659 5 337 5 201 2411 6 291

658 3 213 3 486

10 41 1

4 377 6 538 9 333 3 429

18 109 3 291

n a 1 405 2 318

294 4 103

13 303

163 426

FEMALE

397016

397 016

11 535 19 893 32591 15 252 16 945 12 711 25 925 28629 19 538 5 131

21 545 21 634 13 796

245 125

3 002 3 570 7214 2 538

I0688 624

3 547 2 369 9374 2 798 3 870

6 775 2 262 6090 5229 5911 2 980 4 548

82 1 3 466 3 797

12 168

4 724 7631 9 493 3 977

18622 3 678

n a 1 522 2793

255 4473

14 664

175 475

TOTAL

774241

774241

22217 38 297 65 169 29 246 32 789 27 568 49 585 53 987 41 031 10517 42 763 40 970 26 783

480 922

5 783 6 845

14 195 4616

19 740 1 376 6495 4 604

18750 3 277 7485

12 978 4 544

11 749 10566 1 1 112 5 391

10 839 1 479 6 679 7 283

22 379

9301 14 169 18 828 7 406

36731 6969

n a 2 927 5 111

549 8 578

27 967

338 901

SUMMARY OF EXTERNAL TRADE 1987 1996

(1) Figures for 1995 have been updated (2) 1996 figures are prov~slonal

DOMESTIC EXPORTS BY QUANTlTY I990 1006 ( I )

Year

1987 1988 1989 1990 1991 1992 1993 1994 1995 (1) 1996 (2)

Exports (Incl Re Cuports)

333 039 300 09 1 298 133 177 658 184 263 146 767 201 231 4sO 939 >73 867 663 266

Imports

582 531 531 802 578 288 551 095 522 690 524 434 403 387 686474

1 047 649 729 410

Trade Balance

(249 492) (231 711) (280 155) (373 437) (338 427) (377 667) (202 156) (226 535) (471 782)

(64 144)

COMMODITY

TRADITIONAL EXPORT CROPS

Coffee Cotton Tea Tobacco

NON TRADITIONAL EXPORTS Ma~ze Beans and other Legumes F~sh and F~sh products Cattle hides Sesame seeds Soya beans Soap Electr~c Current Cocoa beans Goat and Sheep shns Hoes and hand tools Pepper Vanllla Llve an~mals Frults Groundnuts Bananis Roses and Cut flowers Gltiger Gold Gold compounds

Untt

Tonne Tonne Tonne Tonne

Tonne Tonn~ Tonne Tonnc Tonne Tonne Tonnc 000 h~bli Tonn~ 1 onnc 000

Tonn~

000 Tonn~ Tonne Tonne kd Tonn~ kg k g

I 090

IJI 489 3 808 4760 2342

26733 0 278 1 664 2 660 0207

161 228 I >96

77011 4

1

O> I

1991

127438 7 819 7018 2400

33070 14419 4 687 2 750

17805 2 382

1 sO 080 492

4878> 263 220

3 783

239 1814

131

1992

119006 7 536 7816 2291

29623 9327 4 851 3 561

12863

281 827 623

118 150 3 62 182

84 1952

7 500

1993

114 169 7961

10 175 4109

160438 47 532

6 138 > 259 8372 7 076 2 597

2s6 182 1313

486 3 24 333

4'21 47

2 760 625 301

96941 290

1 1 200

1994

194325 3 841

10972 4082

99511 37477 6 564 6 737 4142 1 690 2 142

252 201 623 218 476 269

13488 64

169 415

2535 241 292

62 1 392

1995(2)

168 860 5 580

10681 3525

86149 38 758 16046 5 090 9314 3 972 4420

195 500 552

16 793 80

176 160 324 39 1

1 187 133 378

52 2 448

1996 Est~mates

278711 9 756

14 610 3 118

86 552 40 308 14 075 5 017

1 1 462 8 493 3 657

151 117 1414

267 74

14 868 45 48 75

2 557 379 504

113 1 394 2 826

DOMESTIC IMPORTS BY VALUE SITC GROUPING 1993-1996 (1)

(000 US$)

SITC Descrlptlon

Llve anrmals other than anlmals of dlvlslon 03 Meat and meat preparations Darry products and buds eggs Flsh crustaceans and molluscs and preparatrons thereof Cereals and cereal preparatrons Vegetables and fruit Sugars sugar preparation and honey Coffee tea, cocoa, splces and manufactures thereof cccdlng sh~ff for mlmals (not lncludlng unmllled cereals) Miscellaneous edlble products and preparatron Beverages Tobacco and tobacco manufactures H~des, sk~ns and fursklns, raw 011 seeds and oleaginous fru~ts Crude rubber (tncludmg synthet~c and recla~med) Cork and wood Pulp and waste paper Texttle fibres (other than wool tops) wastes not manufactured Crude fertlllzers and mlnerals (excl coal petrol preclous stones) Metalllferous ores and metal scraps Crude anlmal and vegetable materlals Coal coke and briquettes Petroleum products and related materlals (2) Gas natural and manufactured Antmal 011s and fats Flxed vegetable fats and 011s crude refined or fractroned Anlmal or veg Fats and 011s processed anlmal or vegetable waxes Organlc chemlcals Inorganic chemlcals Dyelng tannlng and colourlng mats Medlcal and pharmaceutical products Essent~al 011s perfume materrals tollet cleanrng preparations Fertlllzers manufactured (other than those of group 272) Plastrcs In prlmary forms Plastlcs m non primary forms Chemtcal materlals & products nes Leather leather manufactures nes and related products Rubber manufactures Cork and wood manufactures (exc furnt) Paper paperboard and artlcles of paper pulp paper or paperboard Textrle yam fabrlcs made-up artlcles nes and related products Non-metall~c mlneral products nes Iron and steel Non ferrous metals Manufactures of metals nes Power generatrng machlnery and equrpment Machrnery speclallzed for particular lndustrles Metal workrng machlnery General lndustrlal machlnery and equlpment nes machlne parts nes Ofice machlnes and automatic data processing machrnes Telecommun~catrons and sound recordlng/reproduclng apparatus etc Electrical machlnery apparatus and appliances nes Road vehlcles (mcludlng alr cushlon vehlcles) Other transport equlpment Prefabrlcated bulldrngs sanltary plumbrng etc fixtures and tittlngs Furniture and parts thereof, beddlng mattresses mattress supports etc Travel goods handbags and srmrlar contamers Artrcles of apparel and clothtng accessories

Footwear Professional sclentlfic and controlling Instruments and apparatus nes Photograph~c apparatus equlpment and supplres and optlcal goods watches M~scellaneous manufactured articles nes Gold non-monetary (excludmg gold ores and concetrates) Undescrrbed

TOTAL

NOTE (1) 1996 figures are provlslonal (2) 1993 figures for petroleum are not avarlable

8

11. BUSINESS ENTITIES IN UGANDA

When establ~shrng a busmess In Uganda, most Investors choose to set up a company, e~ther lncorporatlng locally or reglsterlng as a forergn company Other busmess entltles Include sole propr~etorsh~ps and partnersh~ps

COMPANIES

Incorporatlon m Uganda 1s regulated by the Compan~es Act, Chapter 85 of the Laws of Uganda A company retalns a legal ~dentlty separate and apart from the officers, members and shareholders of the company Thus although legal proceedings can be lnlt~ated agalnst the company, they can not be ln~t~ated agalnst the indlv~duals themselves for the act~ons of the company

A company incorporated under Ugandan law 1s legally able to own property as a separate entlty Thls holds two d~stlnct advantages a company can occupy busmess premlses as a tenant, and members of the company cannot Interfere w~th the company's property In cases of commerc~al d~sputes, a company can take action to enforce rts legal rights At the same t~me, ~t may also be sued for breach of ~ t s dut~es

There are no share capital requlrements In Uganda and cornpanles are often formed wlth a nomlnal share cap~tal Most Investors set up companles ltmited by shares, where the members' llabllrty u I~mlted, whereas cornpanles lim~ted by guarantee are usually formed by non-profit ent~t~es

A company 1s recognized as public or pr~vate Public cornpanles face more stringent legal requ~rements than do prlvate companres Publlc companles must have a mlnlmum of seven members, lncludlng two dlrectors, are requ~red to lodge audlted financial statements w~th the Reglstrar of Companies on an annual basls, and must hold a statutory general meetlng annually Publlc cornpanles are perm~tted by law to offer thelr shares to the public, but pnor to dolng so must submlt a prospectus to the Capltal Markets Authority for the~r revlew Prlvate companles may be Incorporated with as few as two members, but no more than 50, includrng one director, are ~ o t reny~::ed :G i~dge audlrea Gnanc~aI statements w~th the Reglstrar, are not requlred to hold a statutory general meetlng annually, and they may not offer thew shares to the publlc

Certificate of Incorporatlon

To recelve a certificate of mcorporatlon, a company must subm~t the following documents to the Reglstrar of Compan~es

Memorandum of Assoc~at~on (three copres), Artlcles of Assoc~at~on (three coples, obligatory for cornpanles l~mlted by guarantee and for unl~m~ted companles, optronal for cornpanles l~m~ted by shares), a statutory declarat~on by a legal pract~tloner engaged in the format~on of the company, or by a person named in the Artlcles as a dlrector or secretary, in complrance w~ih the registration requrrements of the Act, General Company Form No A1 (statement of nomlnal capital), General Company Form No A2 (Declaration of Compl~ance wrth the Companies Act, to be sworn before a Commrssloner for oaths), General Company Form No A9 (indlcatlng the locatlon of the regtstered ofice), General Company Form No 7, to be filed wlthln 14 days of appointment of Drrectors, and General Company Form No A3, to be filed within 60 days of Allotment of Shares

Public companles must also submlt the following documents a statement w~th the names, part~culars, respons~b~lltles and dut~es of the dlrectors and the secretarres, a statement by the dlrectors to take and pay for qualification shares, d any, unless they have s~gned the Memorandum for at least that number of shares, and a prospectus (or statement In )leu of prospectus)

The Memorandum and Art~cles of Assoc~at~on must be drawn up by a practicing advocate unless they are drawn up by a d~rector or secretary of the company

Memorandum Of Association

The Memorandum of Associat~on IS a company's most important document because it detenn~nes the powers of the company Consequently, a company may only engage In actlvlt~es whlch are stipulated In the Memorandum, and may only exerclse powers which have been conferred upon ~t expressly by the Memorandum

The Memorandum of Assoc~at~on must be 111 Engl~sh and must state the follow~ng the name of the company (w~th lznzzted as the last word In the case of a company l ~ m ~ t e d by shares or by guarantee), that the registered office of the colnpany is situated in Uganda, and the company's objectlves

Companies limited by shares or by guarantee must state that the l ~ a b ~ l ~ t y of the members IS 111nlted

Compail~es hav~ng a share cap~tal must ~nclude the amount of share capital proposed, ~nclud~ng the number of shares of a fixed amount (not necessary for unl~m~ted compan~es), a provision that no subscr~ber (first or foundrng member of the company) to the Memorandum may take less than one share, and the number of shares taken by each subscr~ber wr~tten oppos~te to 111s name

Compan~es lim~ted by guarantee must also state that each member undertakes to contr~bute to the assets of the company, In the event of ~ t s be~ng wound up wh~le slhe is a member, 01 w1t111n one year after slhe ceases to be a member 1) a sum, up to a spec~fied amount, wh~ch ~ncludes the payment of the company's debts and liabilit~es which were contracted before slhe ceased to be a member, and 2) the expenses of wlnd~ng up

The Memorandum must be dated and signed by each subscr~ber In the presence of at least one witness The full name, occupatlon and postal addless of each subscr~ber must be listed, as well as the occupatlon and postal address of each wrtness

By spec~al resolut~on a company may alter the provls~ons 111 ~ t s Meinorandurn wrth respect to its objectlves This would be done to enable the company to

carry on ~ t s buslness more econo~nically or more efficiently, attarn any of ~ t s objectlves by new or ~mpioved means, enlarge or change the local area of ~ t s operat~ons, carry on busmess w111ch under eulst~ng c~rcumstances may conven~ently or advantageously be comb~ned w ~ t h the busmess of the company, restr~ct or abandon any of the objectlves specified in the Memorandum, sell or d~spose of the wllole or anv part of the undertaking of the company, or amalgamate wlth any other company or body of persons

Articles Of Assoc~at~on

The Art~cles of Assoc~at~on contam the legulations of a company They are registered with the Memorandum and are slgned by the subscr~bers to the Memorandum The registration of Articles of Assoc~at~on IS requ~red for unllin~ted companles and companles I~mlted by guarantee, but optional for companies l~mlted by shares However, ~f a company chooses not to reg~ster Art~cles, regulations set out

In the Companies Act become the regulatrons of the company

The Artlcles of Assoclatlon must be In Engllsh, prlnted, dlvlded Into paragraphs numbered consecut~vely, and slgned by each subscriber to the Memorandum of Assoclatlon In the presence of at least one wltness

For unl~mlted companles and colnpanles l~lnlted by guarantee the Articles must state the number of members wltn wh~ch the company proposes to be reglstered and, for unllmlted companles wlth a share cap~tal, the amount of share capltal wlth whlch the company proposes to be reglstered

Any Increase beyond the reglstered number of members must be com~nun~cated to the registrar w~thin fourteen days

Table A of the Flrst Schedule to the Companies Act contalns regulatlons for the management of a company llm~ted by shares The Artlcles of Assoclatlon of any company may adopt any or all of these regulatlons, but they are particularly applrcable to companles llmlted by shares Where a company llmlted by shares does not reglster Artlcles of Assoclatron, the regulat~ons contalned In Table A shall be the regulatlons of the company In add~tlon, where a company Ilmlted by shares does reglster Artlcles, but the Art~cles do not exclude or rnod~fy the regulat~ons contalned In Table A, then these regulatlons become the regulatlons of the company

Tables B, C, D and E of the Flrst Schedule to the Cornpanles Act contaln forms of Memorandums and Artlcles of Assoclatlon Table B contalns the form of Memorandum of Assoclatlon of a company llmlted by shares Table C contalns the form of Memorandum and Artlcles of Assoclat~on of a company lrmlted by guarantee not hav~ng a share capltal Table D contalns the form of Memorandum and Artlcles of Assocratlon of a company llmlted by gudrantee havlng a share capltal Table E contalns the form of Memorandum and Artlcles of Assocratlon of an unl~mlted company havlng a share capltal

Subject to the provlslons of the Colnpanles Act and to the condlt~ons contalned In a company's Memorandum of Assoclatlon, a companv may alter ~ t s Artlcles of Association by specla1 resolution

FOREIGN COMPANIES

A company ~ncorporated 111 a forelgn count~y 1s author~zed to operate 111 Uganda ~f ~t obtalns a Certificate of Reglstratlon A certified copy of the document that defines the company's constltutlon ( ~ n Engllsh) must be submitted to the Registrar Genela1

SOLE PROPRIETORSHIPS

A sole proprletorshlp is not a separate legal entlty wli~ch means that the lndlvldual who owns the busmess is personally l~able for all debts There are no formallt~es Involved In settlng up In busmess as a sole propr~etorsh~p, apart from reglstenng the busrness name

PARTNERSHIPS

Partnerships are governed by the Partnersh~p Act, Chapter 86 of the Laws of Uganda, and are defined as agreements between lnd~vlduals for the pilrpose of doing busmess They are llmlted to 20 people The nature of busmess of a partnersl~~p can be changed at any tlme provlded all members agree to the change, and ~f one of the partners leaves the partnershlp, ~t ceases to exlst, unless otherwise stated In the partnershlp agreement

Partnerships are always unlimited, and as they do not have a separate legal identity apart from their members, each partner is liable for the debts of the firm, as well as any actions taken by another partner in the ordinary course of the partnership business A partnership can be sued either in its firm name or through the individual partners, but even when sued in the firm name the partners must appear in their individual capacity, and execution can only be against the individual partners, not against the firm

All property rights and mterests in the property brought into the partnership stock, purchased on account of the firm, or acquired in the course of the partnership business are presumed to be partnership property unless proved otherwise Although a partnershlp is not a legal entity, it can own real property through a trust, a contractual licence, or a lease A partnership can also hold a land title m its name as a Trustee

There are two types of partnership - express and implied An express partnership is formed when two or more individuals or corporations draw up a partnershlp deed The deed, which must be signed by all the partners, is registered as a document under the Registration of Documents Act, thus making the deed automatically admissible in evidence in a court of law, should the partnership matters end in court at some future date Any points not covered In the agreement are governed by the Partnership Act An implied partnership exists where indlvlduals engage in business together without a formal agreement As long as there is evidence of profit sharing, the partnership is impIied by the law which dictates how the partners share in the obligations, profits or losses, or capital of the partnership To avoid misunderstandings or problems, ~t is usually advisable for the partners to have a written agreement and to have it registered

The following pages provide a sketch of the requirements at each stop m the investor's path to starting hdher new business In many cases, changes are being made by agencies to simplify procedures To save time, investors should check with the UIA, a solicitor or consultant, or agency personnel to determine whether they are accompllshlng the procedure in the most efficient manner

The length of tlme from arrival in Uganda, or the decision to invest there, to the actual startup of operations, has a lot to do with the investor and the investment If an investor 1s locating to a bullding site with utilities m place, sfhe could beg~n operations in less than one month If an investor is choosing a building site and constructing office/manufacturing space, or is seeking entry into a restricted area, the process could take six months to several years The variation depends upon the persistence of the Investor and the availability of services and materials

Note Some of the costs noted are gtven m Ugandan shrllzngs (UgSh) whtle others are gzven m US dollars ($) At press tzme the exchange rate was UgSh 1295 = $1 00

QUICK GUIDE

% .. , . , . . . . . . . . -

%me T2tbII8.z

1 vlslt of 1 hour to register, 1-2 days for busmess name certificate and certificate of mcorporation

2- 5 days for approval

- .,

Funchon

Investor must have a busmess name and be a registered company before s h e can move forward

A local investor wlth over $50,000 or a forelgn mvestor wlth over $100,000 m new mvestment vrsits the UIA for an ~nvestment I~cense, the llcense wlll afford himiher certaln priv~leges throughout the rest of the process

1, Reg~strar

The followzng steps may be taken m dzfferent order However obtarnrng utrlrtzes and work permrts wrll be the most trme consumtng andshould be attended to$rst

2 -

I,

:

Uganda Investment Authority

(UIA)

If new construction, water and electnclty will take at least 2 - 4 months If service 1s already avsulable m the area, 1- 4 weeks UTL phones (fmed lmes) currently take 1 - 3 months, lf there 1s a free lme One can wait years for a fiee lme m some areas CelTel

d i 3,

- I :

-2 +

L '

-

I: ‘" Uganda cellular phones are

: Telecom available lmmedlately

L ~ m ~ t e d (UTL), MTN moblle phones are Celtel Ltd , available mmedlately MTN Uganda Ltd

Imm~gra t~on Work perm~ts are required only for forelgn mvestors 1 vlsit of 1 hour to andfor forelgn workers The UIA license and letter of apply, at least one recommendation will facrlltate thls process month to recelve the

permlt

number, 2 weeks for

Investor 1s constructing a new bmldmg, he or she must also go here for site plan approvals and cert~ficate of

1 occupancy I I

Electr~c~tv Uganda Electr~c~ty Board (UEB), Water and Sewage Nat~onal Water and Sewerage Corporation (Nwsc), Televlt one

Because of the length of tlme needed to get utll~tles m place, all mvestors are advlsed to begm thls process lrnmedlately followmg UIA llcense approval Letters from the UIA may encourage these entitles (mostly parastatals) to move more rapldly In the event of new construction, or brlngmg new servlces to a slte, the mvestor IS requlred to prov~de slte plans Investors should be aware that they may be requlred to fund the full costs of brlnglng servlces to the slte UEB has started a program whereby these costs may be deducted from monthly electrlc~ty bills Environmental site assessments are also requlred

REGISTERING A BUSINESS NAME

According to the Registrabon of Buslness Names Act, Chapter 87 of the Laws of Uganda, every bus~ness in Uganda must register its buslness name To register, a completed business name registration form must be sent or delivered to the Registrar of Buslness Names, located at the Registrar General, within 14 days of the start of business

Once it is usued, the Business Name Registration Certificate must be openly displayed at the registered place of business The Registrar keeps an ~ndex of all registered business names and these records are open to the public upon payment of a fee If there is a change in the information contained in the registration form, the Registrar must be informed within 14 days of the change When an individual, a firm or a corporation ceases to do business, it must send a notice of cessation of business to the Registrar withln three months of cessation Fallure to comply wtth any of these regulations is punishable by a fine

Where do you go Uganda Reglstration Services Bureau, Parllamentary Buildings First Floor, Room 13 - Registrar General Rooms 12 and 3 - Legal Officers (Asst Registrars) Room 11 - Registry

Who goes? Everyone

m a t does the mvestor have to do 3

Complete Business Name Registration Form T ~ m e Ftlling in particulars, name search, payment of fees Cost Registration Fees UgSh 2,000/=

What does the znvestor recezve? Business Name Registration Certificate T ~ m e Not more than two (2) days Cost None in addition to the above

REGISTERING A COMPANY (INCORPORATING)

Where do you go? Uganda Reglstration Services Bureau, Parl~amentary Buildings First Floor, Room 13 - Registrar General Rooms 12 and 3 - Legal Officers (Asst Registrars) Room 1 1 - Registry

Who goes? All businesses to register company names and obtain certificates of tncorporation

What does the znvestor have to do ?

1 Provide Memorandum and Articles of Association (investor should obtain 10 copies of these for the entire investment process ) Tlme Varies May be solicitor prepared Needs solicitor's signature Cost Varles 2 Complete forms Al, A2, A3, A9, and 7 (Dtrectors' signatures required ) 161me Preparation Cost UgSh 1,500/= (UgSh 300 per form )

What does the rPrvestor recezve? 1 Duplicate stamped copy of deed and cert~fied copy of deed T ~ m e 1- 2 days Cost UgSh 3,900/=

2 Certificate of Incorporation making the business a legal entity T~me 1-2 days ~f all the requrrements ava~lable Cost Stamp Duty of 0 5% on Nom~nal Capital, Stamp Duty of UgSh 23,000/= on the Memorandum and Artlcles of Association, UgSh 410/= fillng fee and adjudications Registrat~on fee increases gradually depending on nominal capltal It is usually much lower as compared to the stamp duty on nominal capital

REGISTERING A FOREIGN COMPANY

Where do you go 7

Uganda Reglstration Services Bureau, Parl~amentary Buildings First Floor, Room 13 - Registrar General Rooms 12 and 3 - Legal Officers (Asst Reglstrars) Room I 1 - Registry

Who goes7 Fore~gn companies or thelr legal representat~ves

What does the rnvestor have to do 9

Deliver to the Registrar 1 A certified copy of the document that defines the constitution of the company (in English) 2 A l ~ s t of the Directors and the Secretary 3 A statement of subsisting charges 4 Names and addresses of a person(s) In Uganda authorized to recelve service on behalf of the company T ~ m e Preparation of the documents

What does the rnvestor recetve 7

A cert~ficate of Reglstration Tlme Not more than one day Cost $470

REGISTERING A PARTNERSHIP

Where do you go 7

Uganda Reglstration Services Bureau, Parliamentary Bulldings Frrst Floor, Room 13 - Registrar General Rooms 12 and 3 - Legal Officers (Asst Reglstrars) Room 1 1 - Registry

Who goes7 Any on of the partners

What does the rnvestor have to do 9

1 Register the partnership as a firm under the Busmess Names Reglstration Act m order to secure the name (see above) 2 Drafl the Partnership Deed (3 coples) 3 Present the documents for reglstrat~on Tlme Completing Busmess Names Reglstrat~on, draftlng of partnersh~p deed Cost UgSh 3,900/=

What does the rnvestor recerve? Stamped coples of the Partnership Deed T ~ m e 1-2 days Cost None in addltlon to above

OBTAINING AN INVESTMENT LICENSE

Where do you go? Uganda Investment Authority Investment Centre, Kampala Rd (oppos~te Bank of Uganda) - Deputy Executive Director

Who goes7 1 Any local investor with an investment of $50,000 or more, who wishes to obtatn an Investment License Local tnvestors do not have to go to the UIA to obtatn an investment license 2 Any foreign investor with an investment of $100,000 or more is eligible to receive an investment ltcense Fore~gn Investors w~th Investments less than $100,000 are not eligible for Investment Licences The only exceptions are Investors in professional servtce sectors whose investments in capital goods are normally small, but who bring Into the country specialized technology and skills and provtde specialtzed traintng to the local work force In these cases, UIA evaluates the investor for an Investment Ltcence on the basis of investment value and also the new technology and skills the project brings into the country

What does an tnvestor have to do 7

To obta~n an investment license, an Investor must provide Certificate of Incorporation, Memorandum and Art~cles of Association, and a business plan/detailed investment plan which includes the capttal investment, value and timing of investment and a comprehensive training program T~me Investor preparation of these documents Cost None to apply for license

What does the ilnvestor recetve? 1 An investor who meets the UIA cr~terla will be granted an investment license which will give the investor access to UIA facil~tation 2 Investors can also apply for MIGA Insurance coverage through the UIA before they make any investments MIGA coverage insures forelgn investments against a wide range of non-commercial risks including expropriation, currency transfers, breach of contract and civil strife

OBTAINING TELEPHONE SERVICE

Uganda Telecom L~m~ted (UTL)

Where do you go 7

Post Office Building, Entebbe Road - Regional Telecoms Manager

Who goes? Any investor who wants a telephone llne

What does an tnvestor have to do 7

Complete Form TS 106B and subm~t Cert~ficate of Incorporation, Memorandum and Articles of Association, trading license, sketch of site and signatures of two directors T~me Completing forms Cost Process~ng and deposit fees

If bringing in phones or faxes, etc , they must comply with UTL standards and a fee is charged per item $75 00 per fax machine, $30 00 per phone

If telephone service does not exist at the ~nvestor's site, the investor may be required to purchase the poles and equipment

What does the mvestor receive 9

The ~nvestor recelves a telephone Ime, rf ~t IS avarlable Time 3 weeks to years Cost $170 00 ~nstallatron, monthly fees includ~ng fees for local calls

CelTel (U) Ltd

Where do you go 9

CELTEL House, Plot 40, Wampewo Avenue, P 0 Box 6771, Kampala Phone 075-2301 10, Fax 230 106 Contact Sales/Marketmg Department

Who goes? Anyone who wants a cellular phone

What does an cnvestor have to do 7

1 Cash & Talk Sewzce Complete an appllcatron form Time Completrng form Cost $50 connect~on fee, $50 mrnrmum depos~t requrred, $10 50 weekly access fee 2 Permanent Servzce Complete an applrcat~on form Time Completing form Cost $100 connection fee, $300 securlty deposit, $300 deposit for rhternat~onal calls, $38 monthly access fee 3 Cellular phone handset Provlde your own (must be GSM compat~ble - Global Technology for Moblle Phones), or purchase one from Celtel($160-720), Srmba Telecom, or GENCOM

What does the tnvestor recetve? A cellular phone Time One hour ~f you have pard for everythrng Cost Cost of all lncomlng and outgorng calls m addltron to the connectron and access fees, secur~ty deposrt, and cost of handset

MTN Uganda Ltd

MTN 2s the licensed second natzonal operator and at the tzme of press had not yet commenced operatrons As a result, some rnformation zs zncomplete MTN was due to start operatrng on 21 October 1998

Where do you go 7

MTN Customer Servlce Center, 1st Floor, UDB Towers, 22 Hannrngton Road, Kampala Tel 349701,341980,341978,341964, Fax 341976

Who goes7 Anyone who wants a moblle phone1SIM cardslprepard cards

What does an rnvestor have to do 7

1 Pay As You Go Purchase complete package (phone, SIM card, airtime) from MTN Servrce Centre, Select Food Stores, Shell Shops, Simba Telecom Shops, and Blitz Vldeo When alrtime fin~shed, purchase additional airtime cards only Time Maklng purchase of complete package Cost Cost of complete package (not available at press time) 2 Talk Tzme F~ll out a contract and subm~t a posltlve form of rdentrficatron, bank account rnformatlon, letter of employment, and proof of residency T ~ m e Completrng contract Cost Depos~t fee for domestlc calls and/or rnternatlonal calls and/or rnternatlonal roamrng

What does the cnvestor recerve? A mobtle phone T~me Estimated 1-2 days max , possibly less when fully operattonal Cost No tnformation avatlable at this time

OBTAINING POSTAL SERVICE

Where do you go? Uganda Post Limited Man Post Office, Kampala Road

Who goes? Any ~nvestor who wants a Post Office Box or Prlvate Ma11 Bag

What does an lnvestor have to do? Complete a form request~ng a PO Box and attach two passport sized photos of each director, Certificate of Registration and Memorandum and Articles of Association Time Completing forms Cost No processing fee

What does the cnvestor receive? A Post Office Box or Private Mail Bag T~me Several days Cost $20 OOIyear for a large box or private ma11 bag

OBTAINING ELECTRICITY

Wlzere do you go? Uganda Electricity Board Investors tn Kampala and Entebbe UEB Dlstr~ct Office behind Amber House Investors upcountry Amber House (Adjacent to Post Office), Kampala Road, 4th Floor, Room C412, Chief Customer Services Manager

Who Goes? 1 Any investor who requires electric~ty 2 Any investor who plans on usliig alter~latlve means including a generator

What does an tnvestor have to do? 1 Write a letter or complete an applicatioii forin Tlme Correspondence goes through Kanlpala and response is therefore more rapid if attended to in Kampala Cost None 2 Be available for site inspection so that UEB inay determine the cost of installation, ~f needed, of new llnes or reinforced lines The full expense of new lines is borne by the investor Subject to a number of factors, power users are now allowed to offset the capital costs of new connections to the network agarnst future charges for consumption

NB Investors must provide business opevatrons information to UEB so that they may determine the business power needs Special power arrangements may be available at an addztionalfee, to meet investors 24 hour needs, particularly m temperature sensitive manufacturzng

What does the znvestor recetve 7

The investor recetves a quote for ~nstallat~on and when accepted and paid up-front, UEB begins tnstallation T~me 2-4 months on new hook-ups, less than a week where services are tn place Cost Installation costs vary The investor is responsible for new wiring, poles, etc All new subscribers pay a $200 - $1,000 security depostt, which is interest bearing and deducted from the final btll

OBTAINING WATER AND SEWER SERVICE

Where do you go 7

Natlonal Water and Sewerage Corporation (NWSC) Jinja Road (By roundabout) - Dlrector of Techn~cal Servlces

Who goes 7

Any ~nvestor m a major town who requlres water and sewerage servlces Investors outside of town use boreholes, lakes, and rlvers for water, and sept~c fields for sewerage

What does an Investor have to do 7

1 Apply at local NWSC office 2 If a new srte, ~nvestor must supply a site plan w~th a sketch, situation of property, estimated water use and the requ~rements for qual~ty of water to be used for product~on purposes

What does the mvestor rececve7 The Investor recelves a quote from NWSC and when accepted and pa~d, NWSC beg~ns ~nstallatlon Time 2-4 months on new hook-ups, less than a week where servlce exlsts Cost Installat~on vanes, Hook-up - $150 00

OBTAINING WORK PERMITS

Where do you go7 Department of Imm~grat~on M~n~stry of Internal Affa~rs, Crested Towers, Ground Floor - Commiss~oner for Imm~gration

Who goes7 1 Any foreign Investor seek~ng a work per~n~t 2 Any foreign employee seekrng a work permit

What does an cnvestor have to do 7

I At the alrport, an ~nvestor usually recelves a 30-day tourlst pass A Special Pass (Form 10A) should be completed to extend the tlme to 90 days Time 1 day Cost $0 50 form, $47 50 processing

2 After receipt of Investment L~cense from the UIA, an ~nvestor may apply for an Entry Perrn~tIWork Perm~t (Form 1) through the UIA The durat~on IS up to five years, fees are annual, payable In advance Investors must include at least two passport photos, copy of passport, Investment I~cense, the UIA letter of recommendat~on, the busmess plan, Certificate of Incorporat~on and the Art~cles and Memorandum of Associat~on May also require CVs and bank statements show~ng mlnimum Investment of $100,000 and progress of project ~mplernentat~on Investors should justify need for expatrlates Time Process~ng takes one month or more Cost The form IS $0 50 and fees range from $50 to $250 per annum depending on sector Rule of thumb one expatrrateper $100 000 of znvestment

What does the cnvestor recedve7 Investor initially recelves a Speclal Pass and then a work permlt

N B The workpermrt w not full^ valld unless accompanied by a stamp m the Investor spassport

REGISTERING FOR INCOMEICORPORATE TAXES

Where do you go? Uganda Revenue Authority Plot 911 1 Parl~ament Avenue (acrosq from Parl~ament) 3rd Floor - Senlor Princ~pal Revenue Officer

Who goes? All businesses and their dlrectors

What does an investor have to do 7

1 F~ l l in a C E form - corporate prel~miliary rnqulry form - attaching Memorandum and Art~cles of Association as well as d~rectors names and addresses and the fiscal year end date of the firm T ~ m e Preparation Cost None 2 Fill in a P E form - personal prellm~nary Inquiry form - for each restdent dtrector T ~ m e Minutes Cost None 3 Apply for Tax Identification Number (TIN) Tlme 2 days for return of TIN number Cost None 4 Register for PAYE (Pay as You Earn), an employee withholding tax Investor is glven a regtstration number and a brochure of explanat~on w~th a schedule included T ~ m e Preparation Cost None NB The PAYE department w In the same buzldzng as the Income tax department, though on a separate floor 5 Within SIX months of commencement of the fiscal year, a business must submit estimated taxes (Form IRD 2C), and pay any potentla1 tax llabll~ty Four months following the end of the fiscal year, corporate taxes a1 e requ~red to be filed and pa~d on form IR 2C There IS a 2 5% monthly compounded penalty for late filing If estimated and actual tax l~abll~ty dlffer by more than 20%/, there IS a 2% per month penalty 6 On a monthly basis, by the 10th day, a bus~ness must pay PAYE (from employee payroll deductions) using form IR 10 Payment IS made at a des~gnated Uganda Commercial Bank branch Employers must file forms IlUP9, I W l O and IRIplOA annually, whlch provide monthly details as to the amount paid tn PAYE deductions, per employee, for the prlor year The PAYE year runs from 1st July to 30th June

What does the znvestor recezvet Investors recelve a corporate tax ldent~fication number and a PAYE identification number, and the dlrectors recelve personal tax numbers Employer receives all stationery needs for filing PAYE lnformat~on on employees Investors are also assigned a spec~fic revenue officer who can answer questions and assist them

REGISTERING FOR VALUE ADDED TAX (VAT)

Where do you go? Uganda Revenue Authority Parl~ament Avenue Customs House, 4th Floor, Offices throughout the country

Who goes? 1 Any Investor m any sector w~th projected annual gross sales of $50,000 or more 2 Any bus~ness person who wants to get a refund of VAT on ~mports and inputs

What does an znvestor have to do7 1 Complete form VAT 101 in tripl~cate to reglster T ~ m e 1 day for registration number, 2 weeks for certificate Cost None

2 Must make monthly reports to U W A T office on form VAT 100 - Vat Return form Monthly payments are made to UCB on Form VAT 200 3 Investors may be ellglble to obtaln VAT refunds (usmg forms VAT 230123 1) on raw materials, plant and machmery, wlth the Commiss~oner's approval An lnvestor must be llcensed wlth the UIA, be VAT- registered, and have a pre-shlpment report and a mlnlmum shlpment of $2,000 to $10,000

What does the investor receive7 An Investor recelves a cert~ficate whlch should be posted In hls/her place of buslness The URA also prov~des the ~nvestor w~th a VAT return book whrch contalns all the necessary forms for monthly returns

OBTAINING A TRADING LICENSE (KAMPALA)

Tradlng llcense requirements vary by distrrct and local councrl Investors outslde of Kampala w~ll need to check wlth the local clty councll

Where do you go 7

Kampala - Kampala Ctty Councll Kampala Crty Councll Bulldlng Ground Floor, Room B20 - Tradlng Llcense Officer

Who goes7 Anyone operating a busmess In the Central Buslness Dlstr~ct of Kampala Investors outslde the CBD obtaln them l~censes from KCC offices ~n Nakawa, Mak~ndye, Kawempe and Rubaga

What does an cnvestor have to do 7

1 Complete Form KCC 96 - Trading Llceilse T~me Preparation Cost $5 00 NB Do not obtazn the szgnatures of the LCI Town Clerk Health or Burldzng znspectors Where requzred, KCC wrll obtazn after zssuance of a t3 adzng l~cense 2 Provide a Memorandum and Articles of Assoclatron 3 Determ~ne wh~ch Ilcense/permlt category the investment belongs In and pay corresponding fee Cost Fees vary depending on the category(1es) (there are 176 separate categories) m wh~ch a buslness falls For Investors, annual fees range from $100 - 1,000 and are not pro-rated 4 If an investor IS constructing a bulldlng, KCC must approve the site plan, check the slte during construction and issue the final certificate of occupancy

What does the investor rececve? After payment of the Ilcense/permlt fees, and completion of form KCC 96, the Investor recelves a License certificate whlch should be posted/available In the investor's place of buslness T ~ m e Less than one hour However, delays occur lf the Tradlng Llcense Officer 1s away from hls/her desk

IV. DIRECTORY OF SERVICES

QUICK INDEX

If You Need?

Mlcrofinance

Short-term and Long-term Loans

Leasing Faclllty

Jolnt Venture Partners

Export Information

Tradlng License

Company Registration

Technology

Vat Registration

Tax Identrficatlon Number

Penslon Plans

Insurance Servlces

European Development Bank Project The Co-operative Bank Centenary Rural Development Bank Flnca Prlde Consult D~rectory of MFIs (PRESTO) for further rnformat~on

Development Finance Company of Uganda (DFCU) East Afrlcan Development Bank (EADB) Uganda Development Bank (UDB) Preferential Trade Area Bank Commercial Banks

Uganda Leaslng Company East Afr~can Development Bank (EADB)

Uganda Investment Authority (UIA) Danida Pr~vate Sector Development Programme Uganda Manufacturers Association (UMA)

Busmess Uganda Development Scheme (BUDS)

Uganda Manufacturers Assoc~at~on (UMA) Uganda Small Scale industries Assoclat~on (USSIA) Uganda Women Entrepreneurs Assoc~atlon (UWEAL) Uganda Natlonal Farmers Association (UNFA) Prlvate Sector Foundation (PSF) Northern Uganda Manufacturers Associat~on (NUMA) Uganda Nat~onal Chamber of Commerce and Industry (UNCCI)

Export Promotion Board Uganda Manufacturers Assoclatlon (UMA) Ministry of Tour~sm, Trade and Industry

Kampala City Council (KCC)

Ministry of Justice, Registrar General

Uganda lnvestment Authority (UIA) Uganda Manufacturers Assoc~ation (UMA) National Councrl for Sc~ence and Technology

Uganda Revenue Author~ty (URA)

Uganda Revenue Authority (URA)

National Soclal Security Fund (NSSF) Panworld Insurance Company

Natlonal Insurance Corporation (NIC) Uganda Amer~can Insurance Company Pan World Insurance Company Unlted Assurance Company

PUBLIC AUTHORITIES

Capltal Markets Authority (CMA) and Uganda Securltles Exchange (USE) East African Development Bank Buildlng Tel 342788 P 0 Box 24565 Fax 342803 Kampala

The Capttal Markets Authority (CMA) was established in 1996 to regulate and develop the securittes industry m Uganda The CMA Issues rules and regulations for the securities industry Its matn activtties tn thts area are to license market professionals and monitor thetr operattons so as to protect the tnterests of investors The CMA is also charged with developing the markets To thts end the CMA conducts mass education programs aimed at promoting the demand, supply and financtal tntermedlation of securities The CMA 1s also lnvolved in facil~tating the introduction of new legislation and other reguldtry toois that wiii enabie new financial institutions and s e c u r i t i e s ~ o m e a part of the mdustry

The Uganda Securit~es Exchange (USE) IS a corporate body llcensed by the Cap~tal Markets Authonty to conduct the buslness of a stock exchange The prlnclpal actrvltles of the USE are to obtain l~stlng of shares from the buslness community and to provlde a venue for trading shares It 1s housed w~th the CMA

Natlonal Agricultural Research Organ~sat~on (NARO) P 0 Box 295 Tel 42-2032419 Entebbe E-mail Narohqamukla gn apc org

The National Agricultural Research Organlsat~on represents the publlc sector agricultural system in Uganda NARO is composed of a Board, a Secretariat and eight tnstitutes with various research mandates The business community is free to contact the various ~nstitutes for research findings and can also request specialised research tailored to their needs

Natlonal Environment Management Authonty (NEMA) 4 Nile Avenue, Floor 5 Tel 236817 East African Development Bank Bulldlng Fax 257521 P 0 Box 22255 Kampala

NEMA IS the principal agency in Uganda for the management, coordination, monitoring and supervision of all envlronmental activities A project developer must submit a project brtef to the relevant lead agency, and an envlronmental Impact assessment shall be undertaken by the developer if the lead agency, in consultation w~th NEMA, is of the vlew that the project may have an Impact on the environment

Uganda Export Promot~on Board (UEPB) Plot 1 711 9 Jinja Road Tel 259779,230233 P 0 Box 5045 Fax 259779 Kampala Telex 6 1391 UEPC

E-mall UEPC@Starcom co ug

The objective of the Board 1s to facilitate the development, promotion and coordlnat~on of all export related actlvlties that lead to sustainable export growth Servlces provided are detalls of tarlffs for all markets by product category, general market entry informat~on, llsts of Importers by country and product category, prlce data from major prlce determlnlng centres, analysls of market trends for products exported by Uganda, lnformatlon on import and export procedures and documentation requirements by Uganda's fradlng partners, dissem~nat~on of market ~nformation, and technical advice

Uganda Investment Author~ty (UIA) The Investment Centre Plot 28, Kampala Road P O Box7418 Kampala

Tel 25 156215,234 109,25 185415 Fax 342903 E-marl u~a@starcom co ug

Regzonal Investment Centre Northern Uganda P O Box330 Lira

Regzonal Investment Centre Western Uganda P 0 Box 1608 TelIFax 485-20798 Mbarara

Regtonal Investment Centre Eastern Uganda P O Box 1146 Tel/Fax 4534672 Mbale

The Uganda Investment Author~ty was created In 1991 to promote and facllrtate Investment m Uganda The UIA provtdes asslstance to the Investor In asslstlng hlm to obtaln secondary operating lrcenses and work permtts (for expatrtates), to galn access to lndustrral land, and to obtaln electrrcal, water, and telephone servlces

The UIA IS also the natronal antenna for the Centre for the Development of Industry (CDI), based In Brussels Through the UIA, quallfylng industr~al projects can access varlous forms of technical ass~stance from the CDI CDI is an ACP-EU ~nst~tutlon, financed by the European Development Fund (EDF) under the Lome Convention, which brrngs together the European Unlon and 70 countrres from the Africa, Car~bbean and Pacific regloll (ACP) The objectlve of the CDI IS to encourage and support the creation, extenston and restructuring of ~ndustr~al companres In the ACP countrres

Uganda Nat~onal Bureau of Standards (UNBS) Plot M 127 Nakawa Industr~al Area Tel 22236719 P 0 Box 6329 Kampala

UNBS IS a parastatal establrshed under an Act of Parllament Its objectives are to formulate natronal standards, promote standard~sat~on, lobby for consumer protectron, promote publlc health and safety, promote lndustr~al and commerc~al development, and enhance rnternat~onal trade

Uganda Tourlst Board (UTB) IPS Bulldlng, 14 Parllament Avenue P 0 Box 721 1 Kampala

Tel 24219617 Fax 242188

The Tour~st Board IS a parastatal under tlie Minlstry of Tour~sm Its prlme objectlve IS to promote and market Uganda as a vlable tour~st destlnat~on Its operatrons Include promotrng Investment rn tour~sm, coordlnatlng actlvlties In the industry, prov~dlng consultancy servrces to tour agencles and hotels, and malntalnlng Industry standards through l~censing

MAINSTREAM BUSINESS ASSOCIATIONS

Northern Uganda Manufacturers Assoc~at~on (NUMA) P 0 Box 296 Tel 0473-20256 Llra

NUMA was formed m 1992 wlth the alm of l~nklng entrepreneurs m the northern reglon and helpmng to bulld an ~ndustr~al base In northern Uganda Objectives of the assoclatlon are to encourage and expand lndustrlallsat~on In northern Uganda, promote the export of produce and locally manufactured goods, promote government-pr~vate sector d~alogue, coordlnate and promote tralnlng m managerial, techn~cal and marketing skills, and promote and protect the Interests of manufacturers m narthern Uganda

Uganda Manufacturers Assoc~at~on (UMA) Lugogo Show Grounds Tel 22 1034,220698 P 0 Box 6966 Fax 220285 Kampala

The maln objective of the assoclat~on IS to promote, protect and coordlnate the Interests of ~ndustr~altsts rn Uganda The present membershlp embraces manufacturing, banklng and Insurance, transport and clearing, tour~sm, and other lndustrles related to manufacturing Servlces Include industrlal and trade ~nformatlon, trade falrs and exhlbltlons, tralnlng, and publication

Uganda Nat~onal Chamber of Commerce and Industry (UNCCI) Plot 17/19 Jlnja Road Tel 25879112 P 0 Box 3809 Fax 251258 Kampala

The Chamber 1s an apex membershtp organization wlth branches In each of the 45 D~str~cts Members of the Chamber are traders, reta~lers, wl~olesalers, manufacturers and servlce organlzatlons m all sectors of the economy The Chamber encourages small, medlum and large buslness entrepreneurs, both men and women, to learn from thelr successful colleagues to Improve thelr busmesses

Uganda Ollseed Processors Assoc~at~on (UOSPA) UCA Bu~ld~ng 1st Floor Tel 342504 Plot 47/49 Nkrumah Road E-mall O~lseed@starcom co ug P 0 Box2215 Kampala

UOSPA 1s an assoclat~on of edlble 011 processing mlllers establ~shed m 1994 to cater for the Interests of those lnvolved In the ed~ble 011 Industry, from production to consumption It has a current membershlp of 60, mostly 011 millers The objectlves of the assoclatlon are to promote seed multlpl~cation whereby UOSPA has the responsibrllty of avallll~g farmers w~th high quallty oil seed for planting, to conduct an outreach program In the major 011 seed prodi~crng areas of Uganda In order to create awareness on 011

seed crop cultivation, to help 011 mlllers access credlt and part~cipate In the monltorlng of the loans, and to tram 011 mlllers In mlll operatton and maintenance, financial management and book keeplng

Uganda Small Scale Industries Association (USSIA) Management Traln~ng and Advisory Center Campus, Nakawa P 0 Box 7725 Tel 221785 Kampala E-ma11 USSIA@starcom co ug

USSIA IS a non-governmental organlsatton set up In 1979 wlth the purpose of enhancing industrlal development through promoting small-scale ~ndustrles in Uganda Llmlted llab~l~ty companies,

partnerships and lnd~viduals operating small scale or cottage industries are eliglble for membershlp The objectlves are to moblllse small scale lndustr~al~sts in the country, promote dialogue between government and small scale industr~al~sts, provlde training, provide technical and other relevant ~nformatlon, Influence government poilcy on small scale ~ndustries, promote the market~ng of goods produced by small-scale ~ndustrles, negot~ate for finance and technical ass~stance, and asslst tn the procurement of inputs and raw materials for members USSIA has branch offices m 25 d~strrcts across

the country

Uganda Women Entrepreneurs Assoc~ation Lim~ted (UWEAL) P 0 Box 10002 Tel 257177 Kampala

UWEAL 1s an associat~on of women entrepreneurs formed In 1987 The objectlves are to establish a forum for women who manage or own commerc~al enterprises, carry out research and establ~sh a database for the women entrepreneurs' programme ~mplementat~on, encourage and fac~l~tate tra~n~ng for women in modern busmess adm~n~stration, and so l~c~ t financ~al and mater~al support

Uganda Women's F~nance Trust (UWFT) Plot 59, Buganda Road Tel 341275 P 0 Box 6972 Fax 255 144 Kampala

The purpose of UWFT is to promote the ecoiiomIc ~nterests of Ugandan women so that they are able to play a more mean~ngful role In the develop~nent process of the country Its objectlves are to advance and promote entrepreneursh~p by women of Uganda, particularly those 111 low-~ncome communities, In conjunctloll w~th Women's World Banh~ng (WWB), to create a loan guarantee mechan~sm to support income generating actrvlties by WWB and those establ~shed by lend~ng institutions, to co-operate w~th various financ~al inst~tutions to prov~de guarantee for loans made by local banks and other lend~ng ~nst~tut~ons to women entrepreneurs, and to solicit techn~cal or other adv~ce and ass~stance to beneficiar~es of the Trust

OTHER BUSINESS ASSOCIATIONS

Federatlon of Ugandan Consultants (FUCO) 38, Lumumba Avenue Tel 251810 Kampala Fax 250968

Federatlon of Uganda Employers (FUE) Management Tra~n~ng and Adv~sory Center Cainpus, Nakawa P 0 Box 3820 Tel 22020 1,220389 Kampala Fax 221257

Institute of Certified Publlc Accountants (ICPAU) P 0 Box 12464 Tel 255957 Kampala

Procurement and Logistics Management Association (PALMA) P 0 Box 1 560 Tel 255553,235719 Kampala

Securltles Commodltles Exchange Brokers & Dealers Association P O Box8109 Tel 258967,235395 Kampala Fax 258539

Uganda Clearlng and Fonvardlng Agents Association (UCIFA) Plot 65, Nkrumah Road Tel 236757,250274 P 0 Box 2858 Fax 220172 Kampala

Uganda Coffee Farmers' Assoclatlon Nlle Hotel P 0 Box 1396 Kampala

Uganda Coffee Trade Federatron (UCTF) Plot 35, Jlnja Road P O Box21679 Kampala

Tel 235905 Fax 257824

Tel 343678 Fax 343692

Uganda Commerc~al Farmers' Assocratron P 0 Box 1367 Tel 344393 Kampala

Uganda Consumers' Protection Assocrstron (UCPA) P 0 Box 6573 Tel 23 1824,25465 1,268687 Kampala Fax 25 1242

Uganda Cooperative Allrance (UCA) P O Box2215 Kampala

Tel 258848 Fax 254495

Uganda Florrcultural Association (UFA) Plot 274, Bombo Road, Wandegeya Tel 530015 P 0 Box 16375 Fax 530015 Kampala

Uganda Flowers' Exporters' Assoclatlon N~le Hotel P 0 Box 30848 Kampala

Tel 258080 Fax 257824

Uganda Grain Exporters' Assoclat~on P O Box 1216 Kampala

Uganda Honey Bee Keepers' Assocratron P O Box7156 Tel 273070 Kampala

Uganda Importers and Exporters Association (IJGIETA) P 0 Box 23579 Tel 347398 Kampala

Uganda Insurers Associat~on (UIA) Shell House, Kampala Road P 0 Box 8912 Kampala

Tel and Fax 230469

Uganda Natlonal Farmers Assocration (UNFA) Farmers Centre Tel 230705,255250,255242 Plot 27 Nakasero Road Fax 230748 P O Box6213 Kampala

Uganda Poultry Development Assoc~at~on P 0 Box 11498 Tel 567294,290532 Kampala Fax 567803

Uganda Quarries' Operators' Assoc~at~on P O Box30217 Tel 268490 Kampala Fax 531969

Uganda Secur~t~es Brokers & Dealers' Assoc~at~on P 0 Box 2030 Tel 221594 Kampala Fax 25 1964

DEVELOPMENT BANKS AND LEASING COMPANIES

Development Flnance Company of Uganda (DFCU) Rwenzor~ House Tel 256125,232212,244059 P 0 Box 2767 Fax 259435 Kampala Telex 61 196, Cable DEVFINANCE

An Investor can ralse money from DFCU to set up a new busmess, or to expand or rehab~l~tate an ex~stlng company DFCU may also act as a co-financier of a Jolnt Venture w~th an ~nternat~onal Investor or as a partner In the pr~vat~sat~on of a state owned enterprise Funds may be prov~ded as a long-term loan of up to ten years, m e~ther fore~gn currency or shlllmgs, or as equlty, or as a m~xture, to fit the needs of the business A detailed bus~ness plan must be submitted to apply for a loan from DFCU Prlority areas are agriculture and horticulture, tour~sm, food and agro-processmg, manufacturmg, and financial servlces

East Afr~can Development Bank (EADB) 4 Nile Avenue Tel 23002213 P OBox 7128 Fax 259763 Kampala Telex 6 1074 EADEVBANK

EADB offers a range of financ~al products to satisfy the needs of ~ t s dlverse cl~entele tn East Afr~ca The financ a1 products include long-term loans in fore~gn and local currency, to set up new projects or for the modern~sation, rehab~litatlon and expansion of ex~st~ng operat~ons, short- term loans for procurement of raw materials, spare parts and small auxiliary equlpment, prlvat~sat~on equ~ty and loan faciltt~es to assist the prlvate sector In the acquisition, rehab~l~tat~on and operation of the enterprises be~ng prlvatised, venture cap~tallinvestment bank~ilg rlsk cap~tal, available to well-selected enterprrses for an agreed pertod after wh~ch EADB d~vests, and loan guarantees In whole or in part for loans made by other financial lnst~tut~ons to ~nvest In Member States' economies Pr~or~ty sectors are agriculture, mdustry, tour~sm and ~nfrastructure One needs a detalled busmess plan to apply for financ~ng

Uganda Development Bank (UDB) IPS Bu~ldmg, 14 Parl~ament Avenue P 0 Box7210 Kampala

Tel 23074015 Telex 6 1 143 Fax 258571 Cable DEVBANK

Uganda Development Bank IS a publlc nat~onal ~nst~tutton establ~shed w~th the alm of fac~l~tatmg, promoting and financlng the development of varlous sectors of the economy accord~ng to the government's plans and pr~or~t~es The Bank generally prov~des financial assistance to meet the foreign exchange component of the project cost ~nach~nery and equlpment, construct~on materials and agricultural equlpment Other Items eligible for financlng include provision of mlnlmum in~ t~a l raw

mater~al requirements and technlcal ass~stance The latter includes payment of foreign technic~ans in connect~on w~th the ~nstallat~on, co~nin~ss~on~ng and trlal runs of the plant However, depending upon the ava~labrl~ty of local funds, the bank may also cons~der financing some of the domestic components of the project on a case by case basls UDB finances new projects as well as expansion, diversificatton, rnodern~sat~on and rehab~litation of ex~st~ng ones The follow~ng types of loans are offered medium and long-term loans, repayable rn five to eight years ~ncludlng a grace per~od, financ~al guarantees, short term fundlng for non-trad~tional exports and co-financ~ng UDB may, In conjunct~on with other financiers, contr~bute to the cost of the project, part~clpate In equity share cap~tal or buy shares in a project

Uganda Leaslng Company L ~ m ~ t e d 5th Floor, Rwenzor~ House Lumumba Avenue P 0 Box 21032 Kampala

Tel 2342831415 Fax 257684 E-mail uganda leasing@imul com

Uganda Leasing Company 1s the first leasing company set up specifically to develop and provlde equ~pment-leaslng fac~l~ties to the buslness community Thls ~ncludes plant, equipment, machinery, commercial veh~cles and busmess cars Uganda k s l n g does not engage in the leas~ng of property nor provide work~ng capital As leaslng is essent~ally equipment based ~t can apply across all the market sectors Generally the size of the transact~on IS In the range of Ug Shs 25 m~lllon to Ug Shs 500 million However, transactions outslde t h ~ s range wlll be considered In speclal c~rcumstances A normal lease pertod 1s 3- 5 years depending on the type of equ~pment financed and the lessee's own antictpated cash flow Unlike a loan fac~lity, leasing 1s prlmar~ly concerned with secur~ty in the asset A securtty deposlt, typ~cally 10-1 5 % of the cost, 1s requtred and th~s wlll be refunded at the end of the lease period fall the lease obl~gattons have been met There may be Instances In wh~ch additional security may be requ~red In order to make the proposal acceptable Under normal clrcumstances Uganda Leasing pays to the suppl~er the full cost of the equ~pment The lessee 1s requ~red to pay to Uganda Leasing, a facility fee and security deposit equal to a negot~ated number of monthly rental payments during the lease per~od

DONOR PROJECTS

Agr~bus~ness Development Centre (ADC) Plot 18, Pr~nce Charles Dr~ve, Kololo Tel 25548213,25546819 P 0 Box 7007 Fax 250360 Kampala E-mail ideaproject@usa~d gov

adc@ma~l starcom co ug

The Agr~bus~ness Development Centre (ADC) was established under USAID's Investment tn Developing Export Agr~culture (IDEA) project to asslst agrlbus~ness firms and assoc~ations m expanding the product~on and marketing of selected crops and products for export The ADC is a resource centre where agribus~ness firms and associations can recelve asststance An tmportant function of the ADC is to identlfy and promote crops and products for wh~ch Uganda has, or can achieve, a competittve advantage Current priority crops Include maize and beans for regional markets, and fresh vegetables, passton fru~t, cut flowers, vanilla, essential oils and cocoa for internattonal markets As selected priority crops may change over tlme, prospectlve clients are urged to contact ADC for a current llst To qualify for ADC servtces, prospectlve clients should focus on an ADC prlor~ty crop or product, have the necessary resources to follow through on ADC technlcal advlce, have the potentla1 e~ther to export or to asslst those who export, and be either a prlvate company or an assoctatlon In add~tton, the ADC has ltmited cost- sharing funds available through whlch ~t can finance "Jump start" and research and development costs wtth clients on approved projects

Bus~ness Uganda Development Scheme (BUDS) C/O Private Sector Foundation Tel 230985,3421 63 Plot 43 Nakasero Road Fax 259109

P 0 Box 7683 Kampala

E-mall buds@~mul com

BUDS 1s a cost shar~ng grant scheme that will re~mburse 50% of pre-approved qual~fy~ng costs of private sector firms, inst~tutions and groupings of firms All Uganda based prlvate firms and assoc~ations m commerce, mdustry, commerc~al agriculture and servlce sectors can qual~fy BUDSO lntentlon 1s to Increase the compet~tlveness, sales and profitabll~ty of Ugandan prlvate firms, and for the firms to realize the value of using outside servlces to better such performance BUDS promotes the use of external servlces to allow companles to concentrate on structure, plann~ng and sales and revenue performance wh~ch w~l l enhance thew abil~ty to receive commerc~al loans and attract equ~ty BUDS participants recelve re~mbursement of 50% of those costs that are approved w ~ t h ~ n an accepted sales expansion program Firms supply~ng servlces to the pr~vate sector can also qual~fy for act~v~ties that upgrade their capacity to perform

The Danida Private Sector Development Programme Royal Danish Embassy Tel 256687,250938,250926,256783 P 0 Box 1 1243 Fax 254979 Kampala E-ma11 denmark@imul com

The Danida PSDP fac~litates and supports the creat~on of long-term business llnkages between companles m Denmark and companles in Uganda To qualify for support the cooperation must have a long-term commercial perspect~ve and comply with Dan~da development objectives Durlng the first phase the project can ass~st w~th the preparat~on of a full-fledged feas~b~l~ty study If the preparatory phase turns out to be successful, the partners may benefit from subs~dies ava~lable for the project phase The PSDP programme offers to support some of the ~n~tial expend~tures for the start of the project The PSDP may share the costs of training and provide local or Dan~sh experts for technical assistance in areas of product~on, management, market~ng or export Funds may be available to reduce detrimental effects to both the external and the working env~ronment and to Improve occupat~onal health On a mlnor scale, funds are also ava~lable for the project to do export promot~on ac t~v~ t~es If finance cannot be obtained from other sources the PSD programme may offer to facil~tate the acqulslt~on of a loan to pay for mach~nery, equipment and raw mater~als requ~red for the ~mplementation of the project

European Union Small Scale Enterpr~se Development Programme In the Urban Sector (SSEDP) 24 B Lumumba Avenue Tel 230035,254613 P 0 Box 10790 Fax 230033 Kampala

SSEDP's objectlve 1s to create jobs and improve urban l ~ v ~ n g and work~ng cond~t~ons through the promot~on of small-scale enterprises The following major towns are covered Kampala, Mukono, Njeru, Jlnja, Iganga, Busla, Tororo, Mbale, Soroti, L~ra, Apac, Gulu, Masmd~, Ho~ma, Fort Portal, Kasese, Mbarara, Rukunglr~ and Masaka The target groups are mlcro and small-scale entrepreneurs operating withm a rad~us of two kilometres from town centres, and ~ntermed~ary ~nst~tut~ons promoting small-scale enterprises

To ach~eve its objectives, SSEDP prov~des entrepreneursh~p development tralning and techn~cal sk~lls tramlng Entrepreneurs should be able to contr~bute at least 10 % of the total tra~ning cost SSEDP also provides credit fac~l~ties if the entrepreneur is able to contribute 25% of the value of the project, part of which has to be cash Projects exceeding Ug Shs 15 million require a complete feas~bility study Loans require physical collateral and cannot exceed three years

Pr~vate Enterprise Support, Training and Organisatlonal Development Project (PRESTO) Plot 2 1, Kawalya Kaggwa Close, Kololo Tel 34748 11213 P 0 Box 24204 Fax 347635 Kampala E-mail presto @imul com

PRESTO 1s a four-year lnitlative funded by the Un~ted States Agency for Internatlonal Development (USAID) to support the growth of the prlvate sector in Uganda The project focuses on ~ncreaslng the capab~llties of mlcro and small enterprlses, bus~iiess assoclatlons and the Government bodles that formulate and Implement pollcies The Center for Mzcroenterprue Fznance (CMF) d~ssemlnates mlcroenterprlse finance best practlces to the managers and staff of m~crofinance ~nstitut~ons, Government, donors and researchers The CMF has three prlnclpal activ~t~es a grants faclllty for microfinance ~nstitutlons that are comm~tted to best practlces, a tralning program, and a technical assistance program The CMF has an liiteractlve Internet llnk and a comprehens~ve set of materials document~ng the methodologies and experiences of microfinance ~nstltutlons worldw~de The Buszness Assocratzons Inrtratzve (BAI) has three objectlves lncreaslng the part~clpat~on of mlcro and small enterprlses (MSEs), espec~ally those owned by female entrepreneurs, In busmess assoclatlons, lncreaslng the level and quality of servlces offered to menibers, and ~ncreaslng selected assoc~at~ons' effectiveness In represent~ng members7 interests The Polzcy and Regulatory Reform (PARR) component focuses attention on the implementat~on of reforills for contl~iued sustainable growth of the economy PARR facil~tates the pol~cy elaboration needed for the typically u~iresolved details to see pollcies put Into actlon Regulations must enjoy the support of those who must l ~ v e wlth them Working hand-ln-hand wlth pr~nclpal counterpart ~nstitutions, PARR ~dentlfies, recommends and takes spec~fic act~ons to slmpllfy processes, translate policles Into practice foster transparency and enhance accountability

Private Sector Foundatlon (PSF) Plot 43 Nakasero Road P 0 Box 7683 Kampala

Tel 342 163,230956 Fax 259109 E-mall prisf@starcom co ug

The PSF has been structured as a companv l~ ln~ ted by guarantee The members of PSF are buslness assoc~atlons and publ~c sector organlsatlons that serve the prlvate sector In Uganda The PSF helps to ~nstltut~onallse the process of publlc-private sector dlalogue In Uganda and to bulld trust and sustaln business confidence The Foundatlon advises Government on policy lssues affecting prlvate sector development It also implements the Uganda Prlvate Sector Competitiveness Project (PSCP), a jolnt ini t~at~ve by the Uganda Prlvate Sector the Internatlonal Development Association (IDA) of the World Bank and the Government of Uganda

The PSCP enhances the competltlveness of ~ndlv~dual enterprlses directly through thelr part~clpat~on in the BUDS Scheme (described In detail later) and the Equlty Financing Component The Equlty Facil~ty 1s an account set up to prov~de equity resources under a management contract to partlcipat~ng equ~ty funds that mobll~se resources from pr~vate investors and/or reach small and medlum slzed enterprlses

UNDP P r ~ v a t e Sector Development Programme (PSDP) Lumumba Avenue Tel 251810 Kampala Fax 250968

The objectlves of the UNDP Pr~vate Sector Development Programme are to support the formulation of a national strategy for prlvate sector development develop a focused programme and plan of actlon for the development of the pr~vate sector, lnobll~ze the necessary resources, provlde short-term ~nterventions m selected crit~cal areas, and prov~de a report that will lead to the preparat~on of the Programme Support Document on Prlvate Sector Development and Poverty Reduction

BUSINESS CONSULTANCY FIRMS

Thzs Irst zs not exhaustzve and u only zndrcatzve of some of the servrces avazIabIe

Impact Associates Uganda House, 9th Floor Tel 23 1883,23 1583

P O Box 1109 Kampala Contact Mr Chris Kyerere

Fax 257342 Email impact@starcom co ug

Impact Associates are development consultants specializing in private investment and financial analysis, strategic planning, and tourism development among other sectors

Impact Buslness Bureau Rainbow Arcade, Plot 2C Kampala Road Tel 348693 P O Box814 Fax 345597 Kamuala - - - --- - - - - - Emarl bbureau@starcom co ug Contact Mr Bruno Komakech

Impact Bus~ness Bureau is involved in private sector and investment analysis, feasibility studies and financial analysis, credit and investment finance analysis, business plan preparation, and provides business advisory services and is an information resource centre

Incafex Consultants Ltd 1st Floor, IPS Building, 14 Parliament Avenue Tel 250426 P 0 Box 8867 Fax 250427 Kampala Email incafex0,imul corn

Incafex Consultants Ltd provides servlces in engineering, economics, agriculture, planning, and law

InterAfnca Corporate (ZT) Llmlted Nlle International Conference Centre Tel 232915,25880819 ext 354 Plot 161 18 Nile Avenue Fax 349870 P 0 Box 30848 Email iacupa@,imul com Kampala Contact Mr Fred Zake, Director, 075-72 1952

InterAfnca Corporate Uganda Lim~ted is a corporatelinvestment advisory services firm licensed by the Uganda Investment Authority to provide business consultancy services to entrepreneurs/investors, government agencies, donor organizations, and institutions in Uganda InterAfrica offers a wide range of services, including information and advice on joint ventures and investment, export planning and investor handholdmg, company formation, business planning and project appraisal, and market research and analysis Serefaco Consultants Ltd 6 Katonga Road, Nakasero Tel 230570,242397 230691 P O Bopx6916 Fax 230691 Kampala Contact Mr K K Chaapa

Serefaco 1s a multi-disc~plinary consult~ng firm providing market analysis, management consultancy services, feasibility studies, and sacio-economic studies

Uganda Manufacturers Association Consultancy and Informat~on Servlces Ltd (UMACIS) Plot 10, Kalitunsi Road, Bugolobi Tel 236147 P O Box9113 Fax 236148 Kampala Email umacis@,starcom co ug Contact Dr William S Kalema, Director

UMACIS provides a variety of services, ~ncluding business planning and project appraisal, market research, investment promotion, management consultancy, and business analysis